1-1     By:  Cain                                             S.J.R. No. 43

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Finance; April 2, 1997,

 1-4     rereferred to Committee on State Affairs; April 11, 1997, reported

 1-5     favorably by the following vote:  Yeas 12, Nays 0; April 11, 1997,

 1-6     sent to printer.)

 1-7                           SENATE JOINT RESOLUTION

 1-8     proposing a constitutional amendment relating to transferring the

 1-9     school tax freeze on homesteads of the elderly.

1-10           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subsection (d), Section 1-b, Article VIII, Texas

1-12     Constitution, is amended to read as follows:

1-13           (d)  Except as otherwise provided by this subsection, if a

1-14     person receives the residence homestead exemption prescribed by

1-15     Subsection (c) of this section for homesteads of persons sixty-five

1-16     (65) years of age or older, the total amount of ad valorem taxes

1-17     imposed on that homestead for general elementary and secondary

1-18     public school purposes may not be increased while it remains the

1-19     residence homestead of that person or that person's spouse who

1-20     receives the exemption.  If the person subsequently qualifies a

1-21     different residence homestead for the exemption, the total annual

1-22     amount of ad valorem taxes imposed on that homestead for general

1-23     elementary and secondary public school purposes while that

1-24     homestead remains the residence homestead of that person or that

1-25     person's spouse who receives the exemption may not exceed the

1-26     amount of those taxes that would have been imposed on that

1-27     homestead in the first year in which the person receives the

1-28     exemption for that homestead had the limitation on tax increases

1-29     imposed by this subsection not been in effect, multiplied by a

1-30     fraction the numerator of which is the total amount of those taxes

1-31     imposed on the former homestead in the last year in which the

1-32     person received the exemption for that homestead and the

1-33     denominator of which is the total amount of those taxes that would

1-34     have been imposed on the former homestead in the last year in which

1-35     the person received the exemption for that homestead had the

1-36     limitation on tax increases imposed by this subsection not been in

1-37     effect.  If the [a] person [sixty-five (65) years of age or older]

1-38     dies in a year in which the person received the exemption, the

1-39     total amount of ad valorem taxes imposed on the homestead for

1-40     general elementary and secondary public school purposes may not be

1-41     increased while it remains the residence homestead of that person's

1-42     surviving spouse if the spouse is fifty-five (55) years of age or

1-43     older at the time of the person's death, subject to any exceptions

1-44     provided by general law.  However, taxes otherwise limited by this

1-45     subsection may be increased to the extent the value of the

1-46     homestead is increased by improvements other than repairs or

1-47     improvements made to comply with governmental requirements.

1-48           SECTION 2.  This proposed constitutional amendment shall be

1-49     submitted to the voters at an election to be held on November 4,

1-50     1997.  The ballot shall be printed to permit voting for or against

1-51     the proposition:  "The constitutional amendment to provide for

1-52     transferring the school tax freeze for an elderly person from a

1-53     former homestead to a newly acquired homestead."

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